Life and annuity operations did well at Allstate Corp. in the second quarter despite a sharp drop in sales of fixed deferred annuities.
Allstate, Northbrook, Ill, is reporting $1.4 billion in net income for the quarter on $9.5 billion in revenue, up from $1.2 billion in net income on $8.9 billion in revenue for the second quarter of 2006.
The Allstate Financial unit, which sells life insurance, fixed annuities and indexed annuities, is reporting $200 million in net income on $1.6 billion in revenue, up from $73 million in net income on $1.5 billion in revenue.
The unit performed well even though fixed deferred annuity premiums and deposits fell to $657 million, from $1.7 billion, Allstate says.
“The decrease compared to the prior year is indicative of lower industry-wide fixed annuity sales and our strategy to raise new business returns on capital for these products,” Allstate says.
In other earnings news:
-Torchmark Corp., McKinney, Texas, is reporting $127 million in net income for the second quarter on $877 million in revenue, compared with $127 million in net income on $869 million in revenue for the second quarter of 2006.
Sales of supplemental health insurance products aimed at U.S. residents under age 65 continued to be strong, Torchmark says.
- UnitedHealth Group Inc., Minnetonka, Minn., is reporting $1.2 billion in net income for the second quarter on $19 billion in revenue, up from $981 million in net income on $18 billion in revenue for the second quarter of 2006.
The managed care company ended the quarter providing or administering health coverage for 17.5 million people, about as many people as it was covering a year earlier.
Enrollment in individual health account plans increased to 2.2 million, from 1.8 million.
UnitedHealth’s commercial health insurance business is seeing more customers cut back on benefits and continuing pressure on yields on renewal business, the company says.
More of the commercial business is coming from bigger groups, and the average ratio of claims to premium revenue tends to be higher for those groups than for smaller groups, UnitedHealth says.
- InsWeb Corp., Sacramento, Calif., is reporting $214,000 in net income for the second quarter on $8.1 million in revenue, compared with $247,000 in net income on $7.5 million in revenue for the second quarter of 2006.
The Web insurance broker says the amount of cash and cash equivalents on hand has increased to $8.3 million, from $6.5 million at the end of 2006.